New Delhi: The India–New Zealand Free Trade Agreement (FTA) came into force on Tuesday, October 20, coinciding with Vijay Dashami, marking a significant milestone in economic relations between the two countries. The agreement is expected to boost bilateral trade, expand market access for Indian exporters, attract investment and create new opportunities for businesses, farmers, artisans and skilled professionals.
The agreement aims to strengthen economic cooperation and make trade between the two countries more competitive. The Indian government has highlighted the pact as an important step towards expanding export opportunities and supporting India’s long-term economic growth.
Signed on April 27, 2026, at Bharat Mandapam in New Delhi, the agreement seeks to deepen commercial relations between the two economies. Its implementation on Vijay Dashami, a festival symbolising the triumph of good over evil, adds symbolic significance to the beginning of a new phase in bilateral economic engagement.
100% Duty-Free Access for Indian Exports
One of the most significant provisions of the agreement is that 100% of Indian export tariff lines will receive duty-free access to New Zealand from day one. The removal of customs duties, which previously reached up to 10% on certain products, is expected to improve the price competitiveness of Indian goods in the New Zealand market.
Major sectors expected to benefit include textiles and apparel, leather and footwear, gems and jewellery, engineering goods, automobile components, pharmaceuticals, medical devices and processed foods.
The India–New Zealand FTA opens new avenues for trade and investment, with 100% of Indian exports set to receive duty-free access to New Zealand from the Entry into Force. The agreement also delivers New Zealand’s best-ever services offer to India and facilitates USD 20 billion in investment.
From textiles and leather to agriculture, pharmaceuticals and MSMEs, the Agreement strengthens economic cooperation while safeguarding India’s dairy and agricultural interests, creating new opportunities for businesses, farmers, professionals and exporters.
#IndiaNZFTA #IndiaExports #TradeUpdate @DoC_GoI #IndiaNewZealandFTA
— PIB India (@PIB_India) October 20, 2026
The agreement is also expected to benefit micro, small and medium enterprises (MSMEs), artisans, women-led businesses and start-ups by reducing trade costs and opening access to a new overseas market.
Major sectors expected to benefit include:
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New Zealand to Facilitate $20 Billion Investment in India
A major feature of the FTA is New Zealand’s commitment to facilitate US$20 billion in investment into India. The proposed investment is expected to support sectors such as manufacturing, agriculture, infrastructure and start-ups, with potential benefits for employment generation, innovation and entrepreneurship.
The agreement also provides a framework for closer cooperation between businesses and industries in both countries, with the aim of translating improved market access into tangible economic benefits.
Bilateral Trade Target Set at ₹35,000 Crore by 2030
India and New Zealand have set an aspirational target of doubling bilateral trade in goods and services to NZ$7 billion, equivalent to approximately ₹35,000 crore, by 2030.
Bilateral merchandise trade stood at around US$1.1 billion in the 2025–26 financial year, according to figures cited by the Indian government during the agreement’s announcement.
The FTA is expected to provide fresh momentum to trade, investment and business cooperation while supporting the broader India–New Zealand Strategic Partnership and its Roadmap to 2030.
What New Zealand Gains from the Agreement
The agreement is designed to benefit both economies. New Zealand exporters will receive tariff elimination or substantial reductions on a large share of their exports to India.
Tariffs on approximately 95% of New Zealand’s current exports to India are expected to be eliminated or reduced. Around 57% of those exports will become tariff-free from the agreement’s commencement, while other products will receive phased reductions or preferential access under specified conditions.
Agricultural products, forestry goods and other commodities are among the areas expected to benefit. However, certain products remain excluded or subject to specific conditions, meaning the agreement does not provide unrestricted duty-free access for every New Zealand export.
New Opportunities for Indian Students and Professionals
Beyond merchandise trade, the FTA includes provisions intended to improve opportunities for Indian students, skilled professionals and service providers.
Under the announced framework, eligible Indian professionals will have access to a quota of 5,000 Temporary Employment Entry visas, while a working holiday scheme will provide 1,000 places annually.
The agreement also provides expanded post-study work opportunities for eligible Indian graduates, including up to three years for certain STEM graduates and up to four years for doctoral scholars. Applicants must continue to meet the applicable immigration requirements.
In addition, India will gain access to New Zealand’s services market across approximately 118 sectors, including information technology, professional services, tourism and construction. The agreement also includes provisions covering traditional medicine services, including Ayurveda and Yoga.
Farmers’ Interests Protected Through Safeguards
The Indian government has said that the agreement balances expanded export opportunities with safeguards for sensitive domestic sectors.
Products such as dairy, sugar, edible oils and certain key agricultural commodities remain excluded from tariff concessions. Imports of selected products, including apples, kiwifruit and Mānuka honey, will be governed by tariff-rate quotas and other specified conditions.
The agreement also establishes an Agricultural Productivity Partnership to promote technology transfer, improved cultivation practices and better post-harvest management. Dedicated action plans for apples, kiwifruit and honey are intended to improve productivity and support farmers’ incomes.
First-Ever JCB Machine Export to New Zealand Flagged Off
Marking the agreement’s implementation, Commerce and Industry Minister Piyush Goyal flagged off India’s first-ever JCB machine export to New Zealand.
Additional export initiatives involving products from agriculture, gems and jewellery, engineering, sporting goods, footwear and leather were also planned to mark the occasion.
The initiative highlighted the potential for Indian manufacturers to expand their presence in New Zealand and take advantage of the agreement’s improved market-access provisions.
A New Chapter in India–New Zealand Economic Relations
The entry into force of the India–New Zealand FTA marks an important step in bilateral economic relations. By combining tariff concessions with investment commitments, agricultural cooperation and provisions for services and professional mobility, the agreement seeks to create opportunities across multiple sectors.
Its long-term success will depend on how effectively businesses use the new provisions, comply with rules of origin and meet product-specific regulatory requirements.
With its implementation coinciding with Vijay Dashami, the agreement opens a new chapter in India–New Zealand trade relations, as both countries seek to expand commercial ties, strengthen economic cooperation and achieve their shared trade target for 2030.
